Mazda Looking To Raise $2 Billion

As we reported last week, Mazda isn’t doing so well. The company posted a $1.29 loss for 2011. To sure up its finances, Mazda is looking to raise 100 billion yen ($1.3 billion) through a public share offering, which would dilute the current share value by a massive 38.7%. Mazda will also seek loans of 70 billion yen from a number of Japanese banks.

The monies would be used to bolster Mazda's overseas production facilities. Currently, 70% of Mazda vehicles are produced in Japan and 90% of those are exported. To fight back at rising yen (which is causing many problems for Mazda), they looking to renovate a plant in Thailand and build a new one on Mexico.

The question remains if these moves will help Mazda keep its independence.

9 Comments

Mazda cannot survive on it's own, this was why Ford became a majority owner and now that Ford wants to focus on it's core business, it cut loose those things that distract it and bring limited value to their core business.

Mazda will be gone I predict in the next 2-3 years. This is a company that has intellectual property to sell but otherwise really could go away just like SAAB and other auto companies/divisions over the past few years.